RPL IPO subscribed 3 times

By agencies   |   Thursday, 13 April 2006, 07:00 Hrs
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MUMBAI: The initial public offer of Reliance Petroleum (RPL) controlled by Mukesh Ambani was subscribed more than three times within ten minutes of its opening.

The Initial Public Offer was fully sold out within 10 minutes of its opening in capital market. The Qualified Institutional Buyers portion has been subscribed over six times, according to market sources, adding that the retail portion was subscribed four times.

Meanwhile hours before the company went public, U.S. based Chevron pumped in $300 million by picking up a five percent stake in RPL. Chevron India Holdings, the Singapore based wholly owned subsidiary of Texaco Corp. has the option to scale up its equity holdings in the company to 29 percent. If Chevron acquires an additional 24 percent equity in RPL, on conclusion of the collaboration between the two energy giants, Chevron’s investment in RPL could go up to $2 billion, one of the largest investment from any multinational company in India. It would be also be one of the largest foreign direct investments in the country.

The deal will allow Reliance and Chevron to collaborate on exploration and production projects, marketing and retailing of petroleum products, refining and sourcing of crude. Chevron has also agreed to partner Reliance in any marketing venture that it takes up in India.

The deal provides Chevron with a toehold in India’s growing refining and marketing market, besides allowing the U.S. company to make a foray in the exploration sector.

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